PH Realty, Rockledge pay $49.5M to Sentinel for rentals in Brighton Beach, Flatbush, part of larger transaction

Peter Hungerford’s PH Realty Capital and Rockledge paid $49.5 million to Sentinel Real Estate for six rental buildings in Brooklyn including 1511-1521 Brightwater Avenue and 200-210 Brighton 15th Street in Brighton Beach, and 165 East 19th Street, 120 East 19th Street, 287 East 18th Street and 1803 Beverley Road in Flatbush in six transactions.

In the first, PH Realty Capital and Rockledge through the entity 1511 Brightwater Avenue Owner LLC paid $16 million to Sentinel Real Estate through the entity 1511-1521 Brightwater Avenue LLC for the 132-unit residential elevator building (D1) at 211 Brighton 15th Street in Brighton Beach, Brooklyn. The expected use is cash flowing.
The deal closed on September 20, 2024 and was recorded on September 27, 2024. The property has 109,832 square feet of built space and 34,440 square feet of additional air rights for a total buildable of 144,480 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $145 and the price per buildable square foot is $110 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)

In the second, PH Realty Capital and Rockledge through the entity 165 East 19th Street Owner LLC paid $12.2 million to Sentinel Real Estate through the entity 165 East 19th Street Gsa I LLC for the 107-unit residential elevator building (D1) at 165 East 19th Street in Flatbush, Brooklyn. The expected use is cash flowing. The deal closed on September 20, 2024 and was recorded on September 27, 2024. The property has 131,040 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $93 per the PincusCo analysis.

In the third, PH Realty Capital and Rockledge through the entity 200 Brighton 15th Street Owner LLC paid $11.2 million to Sentinel Real Estate through the entity 1511-1521 Brightwater Avenue LLC for the 96-unit residential elevator building (D1) at 200-210 Brighton 15th Street in Brighton Beach, Brooklyn. The expected use is cash flowing. The deal closed on September 20, 2024 and was recorded on September 27, 2024. The property has 96,600 square feet of built space and 8,225 square feet of additional air rights for a total buildable of 104,799 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $115 and the price per buildable square foot is $106 per the PincusCo analysis.

In the fourth, PH Realty Capital and Rockledge through the entity 120 East 19th Street Owner LLC paid $4.3 million to Sentinel Real Estate through the entity 120 East 19th Street Gsa I LLC for the 43-unit residential elevator building (D1) at 120 East 19th Street in Flatbush, Brooklyn. The expected use is cash flowing. The deal closed on September 20, 2024 and was recorded on September 27, 2024. The property has 62,500 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $68 per the PincusCo analysis.

In the fifth, PH Realty Capital and Rockledge through the entity 287 East 18th Street Owner LLC paid $2.9 million to Sentinel Real Estate through the entity 287 East 18th Street LLC for the 25-unit residential elevator building (D1) at 287 East 18th Street in Flatbush, Brooklyn. The expected use is cash flowing. The deal closed on September 20, 2024 and was recorded on September 27, 2024. The property has 25,560 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $113 per the PincusCo analysis.

In the sixth, PH Realty Capital and Rockledge through the entity 1803 Beverley Road Owner LLC paid $2.9 million to Sentinel Real Estate through the entity 1803 Beverly Road LLC for the 25-unit residential walkup building (C1) at 1803 Beverley Road in Flatbush, Brooklyn. The expected use is cash flowing. The deal closed on September 20, 2024 and was recorded on September 27, 2024. The property has 20,250 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $143 per the PincusCo analysis.

The signatory for Sentinel Real Estate was Michael Gershman. The signatory for PH Realty Capital and Rockledge was Peter Hungerford. The contract date was December 8, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer PH Realty Capital purchased 19 properties in 14 transactions for a total of $146.8 million and has no record it sold any properties over the past 24 months.
The seller Sentinel Real Estate had not purchased any other properties and sold 21 properties in 21 transactions for a total of $185.9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Brian Kraut, head officer and Martin Ho, head officer. The business entities are Rose Property Mgmt Grp Llc, Firstservice Residential., and 1511-1521 Brightwater Avenue Llc.

The property

The residential elevator building with 132 residential units in Brighton Beach has frontage of 421 feet and is 210 feet deep with a total lot size of 42,000 square feet. The lot is irregular. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $11 million. The property has 80 rent regulated units according to city tax records from 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation, $12,500 in ECB penalties, 68 housing violations, $12,500 in OATH penalties, and one housing litigation in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

There are no active new building construction projects on this tax block.

The majority, or 97 percent of the 112,694 square feet of built space are elevator buildings, with walkup buildings next occupying 3 percent of the space.

The seller

The PincusCo database currently indicates that Sentinel Real Estate owned at least six commercial properties with 337 residential units in New York City with 368,382 square feet and a city-determined market value of $25.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 95 percent of the 368,382 square feet of built space are elevator properties, with walkup properties next occupying 5 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Ph Realty Capital owned at least 49 commercial properties with 1,731 residential units in New York City with 1,535,454 square feet and a city-determined market value of $173 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 64 percent of the 1,535,454 square feet of built space are elevator properties, with walkup properties next occupying 30 percent of the space. The bulk, or 55 percent of the built space, is in Manhattan, with Brooklyn next at 25 percent of the space.
The PincusCo database currently indicates that Rockledge owned at least 15 commercial properties with 925 residential units in New York City with 868,106 square feet and a city-determined market value of $79.4 million. (Market value is typically about 50% of actual value.) The portfolio has $17.8 million in debt, borrowed from Edgewood Capital Advisors and Bethpage Federal Credit Union. Within the portfolio, the bulk, or 80 percent of the 868,106 square feet of built space are elevator properties, with walkup properties next occupying 11 percent of the space. The bulk, or 51 percent of the built space, is in Manhattan, with Brooklyn next at 49 percent of the space.

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